Abstract
In this article, we build a simple present-value model to give the basis for an income-capitalization appraisal method considering interneighborhood dependency of net operating incomes. We also show the maximum-likelihood estimation method for the model in a cross-sectional situation and apply them to the residential land market in the Tokyo Metropolitan Area in the period 1986 to 1998. The results partly provide realistic estimates of the parameters and show the applicability of our model.
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Takatsuka, H., Higuchi, Y. A Present-Value Model of Real Estate with Interneighborhood Dependency of Incomes. The Journal of Real Estate Finance and Economics 23, 47–76 (2001). https://doi.org/10.1023/A:1011164723857
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DOI: https://doi.org/10.1023/A:1011164723857